While renting in many places is still not cheap, it’s usually less expensive than owning a home. Plus, you won’t be on the hook for maintenance expenses, repairing appliances, unexpected costs or property tax. You also won’t have to pay land transfer tax when you purchase a home, commissions when you sell a home or legal costs to buy or sell. 

This means you may have more money left over for investing or other purchases like a vacation or vehicle. 

For many people, buying a home is the biggest investment they’ll ever make. Real estate is often a good investment because over time property values generally appreciate.

For this reason, people often consider paying for their home as a forced savings program. 

In addition, once you’ve paid down a portion of your mortgage, that equity can be used as collateral for a business loan, to purchase more real estate or renovate your home. The equity in your home can even be used to help fund your retirement, whether you continue to live there, or sell it and downsize to another home.